[Funding alert] Edtech startup Vedantu raises $100M in Series D round led by Coatue at $600M valuation
Vedantu, one of the leading edtech startups in the country has raised $100 million as part of its series D round valuing the company at $600 million.
This fresh round of funding was led by US-based investment firm Coatue along with the participation from existing investors. This is the third time that Vedantu has raised funds during this year and the total amount has crossed $200 million.
Backed by Tiger Global, Accel, GGV Capital and others, Vedantu’s core strength is conducting live tutoring.
Edtech segment has come into the limelight ever since the spread of coronavirus pandemic and the resultant lockdown. The business model of these startups of providing online classes and content to schools has witnessed increased usage as well as subscribers.
In fact, the other key players in this segment like Byju’s and Unacademy have either raised fresh round of funding or done acquisitions.
Byju’s recently raised undisclosed round of funding from Bond, an investment firm led by Mary Meeker at a reported valuation of $10.5 billion. On the other hand, Unacademy has done three acquisitions in the last three weeks.
On the new round of funding, Vamsi Krishna, CEO and Co-founder, Vedantu said, “During lockdown, everyone is talking about LIVE classes and it is the best time for us to drive more adoption and strengthen our brand as the best destination for LIVE classes. On top of adding new categories, we will use the funds to invest into content and technology to create the world’s best LIVE teaching-learning experience.”
Founded in 2014, Vedantu offers a host of online tutoring classes from class 1 to 12 and even for various medical and engineering exams. This startup claimed that it recorded a growth of 220 percent during the lockdown with more than two million students.
Following this funding round, Rahul Kishore, Managing Director, Coatue, will also join Vedantu's board.
Rahul said, “Online learning adoption in India is at an all-time high setting a new benchmark for the rest of the world. As we continue to focus on driving high-growth ventures, our investment in Vedantu marks our entry into the Indian edtech market. This move underlines our strategy to partner with companies that are strategically positioned for high growth and scale.”
Edited by Javed Gaihlot